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750 clears major hurdle *** Updated x4 ***

Thursday, Mar 29, 2007

As I always say, a committee vote usually means little in the House, but this might be another exception to the rule. House Bill 750 - the income/sales tax increase - cleared the House Education Appropriations Committee this morning on a vote of 12-3 with six abstentions.

Here are the services that would be taxed for the first time under Amendment One of the bill, which is the version the committee approved…

* Arts entertainment and recreation.
* Personal and laundry services.
* Personal and household goods repair and
maintenance.
* Travel arrangement and reservation services
* Investigation and security services.
* Services to buildings and dwellings.
* Other support services.
* Employment services.
* Car washes.
* Landscaping and architectural services.
* Specialized design.
* Lessors of miniwarehouses and self-storage units
* Rental and leasing (not auto).
* Nonscheduled air transportation.
* Taxi and limo.
* Scenic and sightseeing transportation.
* Navigational services to shipping and salvage
* Motor vehicle towing.
* Couriers (air and local).

Senate President Emil Jones has said he won’t call any tax hike for a vote except the governor’s gross receipts tax, so this definitely sets up an intercameral showdown. As of a few minutes ago, Senators were still waiting on an actual GRT bill, and it’s not known if they’ll see one this week.

The governor, of course, has said he will veto any income and/or sales tax increase.

*** UPDATE *** Two Republicans voted for the bill in commitee, Rep. Jerry Mitchell (R-Sterling) and Rep. Roger Eddy (R-Hutsonville).

*** UPDATE 2 *** A group of gross receipts tax supporters has sent a letter to House Speaker Michael Madigan…

(W)e do not see the merit of HB 750 compared to the Governor’s plan. […]

HB 750 is not an alternative to the Governor’s proposal. HB 750 fails to provide funding for health coverage, and it does not guarantee funding for school construction needs.

The signatories include SEIU, the IEA, the IFT, Illinois Hospital Association and Illinois Planned Parenthood Council, among several others.

The full letter is below. Click it to see it…

grtlettmjm1.jpg

*** UPDATE 3 *** Madigan’s office refused comment on the letter. HB 750’s sponsor, Rep. David Miller, did have some things to say and those comments will be included in tomorrow’s Capitol Fax.

*** UPDATE 4 *** Details of the governor’s statewide bus tour next week have been released. [Hat tip: My dad, who was somehow sent the link.]

- Posted by Rich Miller        

39 Comments
  1. - Guy Fawkes - Thursday, Mar 29, 07 @ 11:56 am:

    Is there a reason this is posted twice?


  2. - Rich Miller - Thursday, Mar 29, 07 @ 11:58 am:

    Admin error, Guy.


  3. - Michelle Flaherty - Thursday, Mar 29, 07 @ 12:13 pm:

    Intercameral showdown!
    Stop it, you tease


  4. - fedup dem - Thursday, Mar 29, 07 @ 12:43 pm:

    Someone should remind Senator Jones that his title is State Senate President, not Tyrant.


  5. - VanillaMan - Thursday, Mar 29, 07 @ 1:30 pm:

    “Senators were still waiting on an actual GRT bill, and it’s not known if they’ll see one this week.”

    Why not?

    When Blagojevich and friend, (no one else is in support of the GRT), thought about presenting the GRT in his Annual Budget Address, did they think they would need to craft legislation? You know, DO more than just make pronouncements and then saunder off?

    The GRT was Blagojevich’s idea. How serious can we believe he is with his proposal when he can’t even do a presentation for the largest tax increase in Illinois history and have his handouts ready?

    Gee, do you think maybe Blagojevich hasn’t thought the GRT through enough to actually have any work done?


  6. - Bill - Thursday, Mar 29, 07 @ 1:43 pm:

    VM,
    Yesterday you said you didn’t think that the GRT was the governor’s idea. Which is it? FYI, the plan is ready,the bill is drafted and being debated and refined as we speak(blog?) the bus is gassed up, everything is on schedule. We’re coming to a small southern Illinois town near you!
    Don’t miss it. Have a great spring break everybody!


  7. - VanillaMan - Thursday, Mar 29, 07 @ 1:58 pm:

    “Yesterday you said you didn’t think that the GRT was the governor’s idea.”

    You must have me confused with someone else. The GRT is Blagojevich’s baby - always has been. This entire thing has been so badly handled and so amateur, it is obviously his creation.


  8. - Bill - Thursday, Mar 29, 07 @ 2:11 pm:

    VM,
    It is hard to keep track of all of your slander but I thought you said sometime this week that Rod was not smart enough to think up the GRT all by himself.
    Can we get a prayer from Bill,of Goods to send us all home happy? Can you hear me or am I by myself?


  9. - Goober - Thursday, Mar 29, 07 @ 2:15 pm:

    Hear the GRT thang was dreamt up before the November election. Blago shoulda leveled with the voters of Illinois back last fall.
    Truth and integrity are not any of Blago’s traits.


  10. - Decatur Dave - Thursday, Mar 29, 07 @ 2:26 pm:

    This is Total Blago- the bill has not been written, but the TV commercials are on the air and the bus tour has been scheduled!! You couldn’t make this stuff up.


  11. - 4% - Thursday, Mar 29, 07 @ 2:27 pm:

    Rich -

    You should go back and get the verbatim speech from Emil when Pate wouldn’t allow Edgar’s tax bill on the floor of the Senate.


  12. - Bridget Dooley - Thursday, Mar 29, 07 @ 2:32 pm:

    Haha, I love that you hat tipped your dad.


  13. - Fan of the Game - Thursday, Mar 29, 07 @ 2:50 pm:

    On the face of things, I like 750 better than the GRT, but I need more info.

    Western Illinois towns on the Mississippi gonna see a lot of the guv’na next week.


  14. - Tony - Thursday, Mar 29, 07 @ 2:52 pm:

    Is this the Holy Crusade on wheels?


  15. - A Citizen - Thursday, Mar 29, 07 @ 2:57 pm:

    Bill, What does the draft/bill say on the Property Tax ?


  16. - Commonsense in Illinois - Thursday, Mar 29, 07 @ 2:59 pm:

    The Crusader-mobile is on the way…Lock up ‘yer women…


  17. - A Citizen - Thursday, Mar 29, 07 @ 3:02 pm:

    Bill, Also what does the 750 say on the Property Tax ? Sorry, this is beginning to sound like I am a HS civics teacher assigning a contrast and compare project. Just seems that you are more versed in this issue than others. Thanks !


  18. - VanillaMan - Thursday, Mar 29, 07 @ 3:04 pm:

    Blagojevich isn’t smart enough to come up with the GRT? I would never say that. That is so slanderous!

    Maybe the reason he thinks God is on his side is because the devil is in the details, and Rod never concerns himself over things like details.

    Or facts.

    Bill, you see Blagojevich’s flops and see a leader. I see Blagojevich’s flops and see a struggling guy who hasn’t figured out his day job.

    GRT bill? When? Now? Who? Me? Uh, I just propose it and then start fingerpointing and namecalling the people who are not on God’s side. Call Abby. Anyone got a phone?


  19. - GettingJonesed - Thursday, Mar 29, 07 @ 3:08 pm:

    The very gifted crew at the IEA (not) wants teachers to get votes for the following

    95TH GENERAL ASSEMBLY
    State of Illinois
    2007 and 2008SB0429

    Introduced 2/7/2007, by Sen. James A. DeLeo

    SYNOPSIS AS INTRODUCED:

    35 ILCS 5/101 from Ch. 120, par. 1-101

    Amends the Illinois Income Tax Act. Makes a technical change in a Section concerning the short title.

    LRB095 08733 BDD 28917 b

    A BILL FOR

    SB0429 LRB095 08733 BDD 28917 b

    1 AN ACT concerning revenue.

    2 Be it enacted by the People of the State of Illinois,
    3 represented in the General Assembly:

    4 Section 5. The Illinois Income Tax Act is amended by
    5 changing Section 101 as follows:

    6 (35 ILCS 5/101) (from Ch. 120, par. 1-101)
    7 Sec. 101. Short Title. This Act shall be known and and may
    8 be cited as the “Illinois Income Tax Act.”
    9 (Source: P.A. 76-261.)

    It is an empty bill….even teachers are not that dumb


  20. - Goober - Thursday, Mar 29, 07 @ 3:09 pm:

    I can see now, it’ll be like the bus in the movie in the “Gauntlet”.


  21. - cermak_rd - Thursday, Mar 29, 07 @ 3:16 pm:

    I see this extension of the sales tax as more pernicious than the GRT. While some of these services that will be taxed are necessary (dry cleaning, car washing…) others are clearly discretionary (cleaning staff to clean ones home, landscaping…). If one at least doesn’t like paying the GRT one can find a small business to provide that service that is small enough to avoid the GRT. If one doesn’t like paying the extended sales tax one can simply decide to forego the service and if enough people do this, cause some harm to small businesses.


  22. - Bill - Thursday, Mar 29, 07 @ 3:31 pm:

    A,
    The GRT, as proposed, says nothing about property tax, sorry! But the governor has expressed interest in discussing “property tax relief”.
    The last time I read HB 750 it proposed a property tax rebate of 25%-30% of the portion that goes to fund” education” meaning p-12.
    If you live in Cook County your best hope for relief is the 7% solution which would cap re-assesment of property value. It is still alive and will probably sneak through somehow.
    P.S. There is nothing wrong with sounding like a civics teacher. I wish they still taught civics in HS.


  23. - a citizen - Thursday, Mar 29, 07 @ 4:06 pm:

    Who’s paying for the bus?


  24. - A Citizen - Thursday, Mar 29, 07 @ 4:11 pm:

    a citizen is not me!


  25. - Laughs - Thursday, Mar 29, 07 @ 4:18 pm:

    After all that, now the teachers are AGAINST 750? It was a godsend a year ago, now it’s garbage. I love politics.


  26. - no caffeine - Thursday, Mar 29, 07 @ 4:23 pm:

    You guys really need to calm down. Too much coffee or something. Language for SB 429 will be finished during the break and the bill will be called after they come back in session. The IEA has the right shell, they just jumped the gun. No grand conspiricies here. Nice job using the ILGA Web site though. It is so early in the session I don’t understand all the theatrics. There’s a long way to go before this thing shakes out.


  27. - Upper Crust - Thursday, Mar 29, 07 @ 4:24 pm:

    If the GRT or 750 don’t fly, what will Governor do then?
    Hopefully he’ll lock himself up in a room for the next 3+ years and leave governing to the professionals(his own party).


  28. - serious - Thursday, Mar 29, 07 @ 4:27 pm:

    Read the letter again laughs. It doesn’t say the teachers are against 750. It says the GRT provides more for schools and school construction. It says the senate President and the Gov. have vowed to oppose the bill. It says that, right now, the GRT has the best chance of passage because of that fact. Amateur hour today.


  29. - Me - Thursday, Mar 29, 07 @ 4:39 pm:

    To Bill and other GRT supporters:

    http://www.taxfoundation.org/publications/show/22306.html


  30. - Cassandra - Thursday, Mar 29, 07 @ 5:25 pm:

    For the average individual tax payer this seems to come down to a sure fire 2 percent state income tax increase plus highly variable property tax relief depending on where you live versus no income tax increase, as yet unspecified property tax relief and dire but vague warnings about higher prices and lost jobs down the road some day.

    A bird in the hand. I’d rather skip the income tax increase and go with the GRT plus some level of property tax relief. And I suspect that when push comes to shove most people who actually have to run a personal or family budget from year to year will decide the same.


  31. - Honest Abe - Thursday, Mar 29, 07 @ 5:41 pm:

    How will such legislation be enforced? I cannot imagine how undocumented workers performing landscaping work can be asked to comply with Blago’s tax laws.


  32. - Reality Check - Thursday, Mar 29, 07 @ 9:06 pm:

    Not sure what you mean by “average,” but as I understand it, 40 percent of all taxpayers will pay *less* under 750. The bottom 40 (poor and working class) will be held harmless from the higher income tax rate. And they consume far less of the discretionary services that will be newly taxed.

    Of course, the GRT doesn’t have any of these protections.


  33. - Cap'n Crud - Thursday, Mar 29, 07 @ 9:13 pm:

    Reality Check: I think the HB750 figures boil down to this … folks in the bottom 60 per cent of earnings will pay no more in overall taxes at the end of the day, as a result of the refundable tax credit it includes. The very poorest of the poor could pay marginally less than they do today.


  34. - Cap'n Crud - Thursday, Mar 29, 07 @ 9:17 pm:

    PS Hats off to Reps. Eddy and J. Mitchell for voting with guts and foresight. It’s better to keep several revenue options open than to narrow ‘em down, unnecessarily, this early in the budget-negotiation sweepstakes. There’s too much sturm und drang and not enough clear-headed thinking out there right now. Let’s all take a big, spring-break breath before we move on.


  35. - Reality Check - Thursday, Mar 29, 07 @ 9:27 pm:

    Thanks for clarifying the refundable credits in 750, Cap. Also, I agree with your hat tip to Eddy and J Mitchell, and I’d add that those who have advocated tirelessly for years to get 750 this far likewise deserve a hearty pat on the back.


  36. - GettingJonesed - Friday, Mar 30, 07 @ 7:58 am:

    Anyone notice GodRod is using Passover & Holy Week for the CrusadeCharade. Let’s hope Rich came brings the Blogcam along so we have live video of the Gov being burning at stake in Southern IL over the electric rate scandale.


  37. - Yellow Dog Democrat - Friday, Mar 30, 07 @ 8:50 am:

    The Governor’s proposal provides less for education than HB 750. The Gross Receipts Tax falls about $1 billion short of fully funding schools at the bipartisan Education Funding Advisory Board’s recommended level, because the Gov diverts money from the GRT to pay for his “Illinois Covered” plan, as well as lots of pork for lawmakers intended to garner votes.


  38. - AnonymousInCapitol - Friday, Mar 30, 07 @ 8:50 am:

    It’s almost embarassing for the Chicago Teachers Union, SEIU, IEA and IFT that they signed that letter AND filed witness slips in favor of HB 750 in committee (and yes, I mean this past week - not last year). But not really surprising.


  39. - NoGiftsPlease - Friday, Mar 30, 07 @ 5:57 pm:

    What about legal, consulting, and lobbying services? I wonder why?


Sorry, comments for this post are now closed.


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